The Premier League has signed a multiyear agreement with Sorare, the fantasy soccer game worth $4.3 billion. Official player cards will be issued by the top soccer leagues around the world.
Under the exclusive multi-year agreement, players of the game can purchase and use NFTs licensed by the Premier League.
Web3 continues to rise, especially after the World Cup exposed it to billions of people.
Sorare, a Paris-based startup, allows people to play fantasy soccer with five players each. Real-time performance by players on the pitch determines the success chances.
Sorare also announced that it is launching two new features to the game. These include the ability for players to compete with specific league player cards, and a “financial Fair Play” feature that allows users to select only all-star teams.
First rumors claimed that Sorare was in negotiations with the Premier League, the highest tier of England’s men’s soccer leagues, about a licensing deal in October 2022. Nicolas Julia, CEO of Sorare, said that things took longer than expected because the Premier League already had an NFT licensing agreement with another company.
Sky News reported that the deal was worth PS30million. Julia declined to provide details about the terms of the deal and the length.
Despite a sharp decline in NFT trading activity, the news is good.
Data site CryptoSlam shows that the Dec. 2022 average selling price for an NFT was $143.22, a 63% decrease from Dec. 2021’s $383.73.
The trading volumes have also fallen significantly. NFT sales fell 78% to $678.2 million in December, compared to $3.1 billion the previous year.
Julia stated that Sorare “trended very different from the rest of space.” The total number of cards traded on the platform was $500 million last year. This is almost double the $270 million it received in 2021.
However, the company noticed a shift in usage. Players are more likely to use the “free-to-play” mode instead of competing with paid-for cards.
Julia stated that 87% of Sorare players don’t spend any money on the platform.
This raises a question about Sorare’s sustainability model: How does it make money if most of its users don’t transact?
Julia stated that the anchor income generators were sufficient to cover large-spending power users. Sorare receives an unspecified percentage of transactions through its service.
According to CryptoSlam data, Sorare is the third-largest NFT collection in the world. According to CryptoSlam, the firm processes approximately $1 million in transactions within a 24-hour period.
The Premier League’s partnership with Sorare is just one of a number of deals between crypto platforms and sports leagues.
Sorare has already announced deals with Major League Baseball and the National Basketball Association.
Julia stated that Sorare was protected from the fallout from the crash of crypto-focused sports advertising because his company focuses more on licensing intellectual property than on sponsorships.
Investors last valued the French startup at $4.3 billion in September 2021. It also includes sports stars Serena Williams, Kylian Mbappe, and Lionel Messi as shareholders.
Sorare has had its share of controversies. It has been accused of encouraging gambling and has come under fire.
